FEMA cut $242 million in security grants to Democratic-led states over immigration cooperation
On September 27, 2025, the Department of Homeland Security and FEMA cut $242 million — a 49 percent reduction — from Homeland Security Grant Program funding due to a coalition of Democratic-led states and Washington, D.C., reallocating the money to states the administration deemed more compliant with its immigration-enforcement priorities. A dozen state attorneys general sued, and a federal court found the cuts unlawful and ordered the funding restored, a ruling that stood after DHS's own appeal failed. Nearly a year later, New York officials said $87 million of the money owed the state still had not been delivered.